Financial Ratio Analysis of Jurys Inn in Hospitality Industry

Assessment 1 Jurys
Inn

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Calculation of Financial Ratios of Jurys Inn...............................................................................3
Discussion about why Financial Ratios are important and their fluctuations in the hotel
industry........................................................................................................................................5
Advantages and Disadvantages of Financial Ratio Analysis in a Hospitality industry...............7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Any successful business relies on sound financial management. Similarly, the most successful
hotels depend on basic financial management techniques to run their properties efficiently.
Creating an annual budget, building a precise financial monitoring model, performing continuing
audits, and creating a reporting system that supports managers in keeping track of P&L data are
all examples of financial management best practises in the hospitality sector (Adesanmi, 2020).
Accountability creates workers and managers responsible for attaining monetary goals in their
individual practical areas and a team of extremely competent investment authorities are equally
essential for monetary accomplishment on the human resources side. The following report
highlights a case of Jurys Inn which is working in the hospitability industry. The financial ratios
of the business are calculated in the following report followed by their interpretation.
MAIN BODY
Calculation of Financial Ratios of Jurys Inn.
Financial ratios are important tools that assist firms and investors in analysing and associating
relationships among numerous fragments of monetary data throughout the sequence of a
corporation's history, an industry, or an entire industrial sector. Financial measures are the most
common and commonly used tools for evaluating a business's financial health. Ratios are
straightforward to understand and compute. They have also been used to compare companies
from different industries. A ratio may be used by both large and small firms to compare financial
data because it is mathematical trend analysis on proportions (Poretti, and Blal, 2020). Financial
ratios, in some ways, overlook the size of a company or the industry in which it works. Ratios
are a method of calculating a company's financial health and performance. Following are the
calculations of different financial ratios of Jurys Inn for the year 2019 and 2020, followed by
their interpretation.
Profitability Ratios: Benefit proportions are an assortment of monetary markers used to
evaluate an organization's capability to create income over the long haul according to deals,
working costs, accounting report resources, or investors' value, involving information from a
specific moment.
Gross Profit Margin = Gross Profit / Sales * 100
For 2019, = 5,050 / 5,500 * 100